A slow and low Winter of homes for sale tends to lead to a blossoming of inventory and a more active market in the warmer months. But this year seemed to be the exception; especially for the DC area.
Local real estate experts say that a healthy market should have around a six-month supply of inventory, but this year there is less then a two-month supply in the DC market. Based off 2012 numbers, DC inventory has dropped 27% and it has affected all price ranges and housing types. The inventory segment to be hit hardest by lackluster supply are the lower-priced starter homes, which are down 42%.
What does this mean for real estate agents in the DC area?
Lower inventory means higher prices which are scaring away first time home buyers like millennials and keeping them in the rental game. Because of this the multi-family market is seeing a huge boost.
Multi-family inventory saw a 3.6% increase last year – greater the national average of 2.4%. And, with over 4,600 units permitted in 2016 – the second highest and only exceeded by the record breaking 2015 – this new inventory has helped keep rents under control with a slim 2.6% year-over-year increase in rents – compared to 4% nationally. These numbers renting a viable option for those priced out of the competitive sales market.
Now that we’ve hit the Winter season once again, only time will tell whether or not the market can swing back around in Spring 2018.
How can agents capitalize on this strong rental market?
The Rental Beast platform provides the perfect addition to any real estate professionals business portfolio. We have the largest database of listings in the DC area including the MLS and other local sites that our Rental Beast ninjas have meticulously searched for, acquired, and added to our platform with the all information you will need to help your clients. Our platform provides several avenues to help agents market themselves and generate rental leads in the DC area.
Rental Beast agents live by the mantra that all rental leads are future home buyers. By building that relationship now handling their rental search, you ensure that when they decide to purchase in the future, you will be the first person they call.